Uganda hotel owners want seasonal loan repayments as government pushes clean energy

Uganda’s hotel owners have called on banks to tie loan repayments to the tourism calendar, warning that green financing alone will not persuade the hospitality industry to switch to clean energy.

Uganda Hotel Owners Association chairperson Jean Byamugisha made the appeal at the launch of the National Green Hospitality Initiative, a government programme to cut hotels’ energy costs, at Serena Hotel Kampala on October 20, 2026.

“One shoe does not fit all. Banks need to restructure their loans to reflect the seasonal nature of the hospitality industry,” Byamugisha said.

She said hotels earn more during peak tourism seasons and can service loans then, but off-peak months strain cash flows. Lenders, she argued, should allow more time to repay during quieter periods so hotels can invest in renewable energy without putting day-to-day operations at risk.

The initiative, co-hosted by the Ministry of Energy and Mineral Development and Equity Bank Uganda, targets hotels, lodges, resorts and conference facilities, which organisers described as heavy energy consumers.

Minister of State for Energy and Mineral Development Phiona Nyamutoro urged the industry to treat clean energy as a business investment rather than a cost.

“When we talk about solar power, energy storage, efficient equipment, clean cooking and electric mobility, we are looking at lowering operating costs, improving service reliability, and reducing exposure to unpredictable energy expenses,” she said.

Nyamutoro said savings from energy efficiency could be reinvested in staff, facilities, expansion and visitor experiences, and that the shift would create demand for project developers, energy auditors, engineers, equipment suppliers, installers, financiers and maintenance firms.

Planned deliverables include energy assessments and potential retrofits at four to five hospitality facilities, intended as demonstration projects ahead of the next Renewable Energy Conference; Uganda Green Hotel Standards and a national certification framework; a framework to address investment barriers; and a specialised financing window combining green loans, concessional credit and Energy Service Company pay-as-you-save models. The programme also proposes Green Hospitality Awards.

Nyamutoro said the initiative was aligned with the Fourth National Development Plan and the Energy Policy for Uganda 2023.

“The investment case before us is therefore clear: lower costs, more reliable services, stronger enterprises and new commercial opportunities,” she said, calling on hotels to develop bankable projects, lenders to unlock affordable capital, technology providers to deliver dependable solutions and public institutions to create an enabling environment.

Catherine Psomgen, Equity Bank Uganda’s Director of Public Sector and Social Investments, said lenders must go beyond promoting sustainability and help turn viable green projects into bankable investments.

“Renewable energy and efficiency should not be viewed simply as environmental expenses, but as investments,” she said.

Psomgen noted that hotels rely heavily on energy for lighting, cooking, water heating, cooling, laundry and transport.

The bank plans to offer green loans, equipment financing, leasing and blended finance for solar photovoltaic systems, battery storage, efficient cooling and clean-cooking technologies. Through a Green Tourism Business Clinic, Equity Bank and other participating institutions are expected to help operators assess their cash flows and explore financing for energy retrofits.

Psomgen said success should be measured by investments mobilised, technologies deployed, jobs created and improvements in business performance.